Bula Resources has reached agreement in principle with an unnamed Canadian company, which will carry Bula's share of an exploration programme in the Sirte and Ghadames basins in Libya. The Canadian company will carry the exploration costs for the entire duration of the exploration programme and will also provide finance for the development phase.

In a note with the group's interim results, Bula chairman, Mr Jim Stanley says the group hopes to exercise its option to acquire the outstanding 75 per cent of Mir Space International in Russia, a move that would give Bula a 50 per cent stake in the Salymskoye oilfield.